How to Fairly Price Your Home
Selling your home without the assistance of a real estate agent is a risky but potentially rewarding endeavor. Many homeowners lack the market knowledge as well as the conventional wisdom to price their houses properly. The biggest risk of all is to overprice a house and see it languish on the market, not to mention watch its’ value deteriorate. If you’re considering pursuing this route, here are some useful tips that will help you get started.
Understand the Market
Thanks to the numerous websites that offer loads of market research to the public, the real estate market doesn’t have to be as overwhelming as you make it out to be. Take the time to get a sense of the average home prices as well how they appreciate and depreciate.
Depending on the market home prices, you’ll be able to set your list prices fairly. If the market is failing, try not to be as bold with your pricing as you’ll just depreciate your home substantially. However, you can become more aggressive with your prices if you’re in a hot seller’s market. Keep an eye out for bidding wars as those are indicators of a trending market.
If you’re willing to part with $300 to $400, you can obtain an appraisal. This number will depend on the market and will be a key factor in your final listing price. Sometimes appraisers will be somewhat conservative when it comes to your home’s value so it’s important that you keep that in mind.
Check online listings for homes that fit yours in terms of square footage, condition, and similar neighborhoods to get an accurate sense of what buyers are willing to pay for. If you rely on the current listing prices, you won’t have any idea whether you are under-pricing or over-pricing your home.
Bio: Kuba Jewgieniew is the head of Realty ONE Group, is a full-service residential real estate brokerage firm.